NEW YORK, Aug. 18, 2008 (LAWFUEL) — Roy Jacobs & Associates
announces that it has filed a class action alleging violations of the
federal securities law against the Federal Home Loan Mortgage
Corporation (NYSE:FRE) (“Freddie Mac” or the “Company”) and certain of
its officers and directors on behalf of purchasers of Freddie Mac
securities from November 21, 2007 through August 5, 2008, (the
“Class”). The action is pending in the United States District Court for
the Southern District of New York. In addition, the firm continues its
investigation of claims with respect to the Company’s public offering
of $6 billion of preferred shares on or about November 29, 2007 (the
“Offering”).
For further information, please contact Roy L. Jacobs, Esq. toll-free
at 1-888-884-4490 or by e-mail to rjacobs@jacobsclasslaw.com. You may
also visit the firm’s website at www.jacobsclasslaw.com.
The Complaint alleges that the Company misled investors as to the
soundness of the Company’s mortgage portfolio, its underwriting
standards and the adequacy of its capital. It took on massive exposure
to subprime and other non-traditional risky loans and under-reserved
for bad loans and sub-prime investments leading to delayed asset
write-downs. Freddie Mac common shares which traded in the $30 range in
late 2007 have been decimated by the subsequent revelations of the
Company’s losses and write-downs, so that Freddie Mac common shares are
now trading below $6, wiping out hundreds of millions of dollars in
shareholder value. Due to the continuing deteriorating situation, there
have been suggestions that a government bail-out might be necessary.
We continue to investigate potential wrongdoing concerning the
Offering. On or about November 29, 2007, the Company sold $6 billion in
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Shares (the
“Preferred Shares”) which trade under the symbol FRE-PZ. The Preferred
Shares, which were offered at $25 per share, have lost over 40% of
their value.
If you purchased Freddie Mac common shares (FRE): (i) during the period
from November 21, 2007 through August 5, 2008; or (ii) or the Preferred
Shares (FRE-PZ) in the Offering or during the period from November 29,
2007 through August 5, 2008, and still hold your shares at a loss, or,
if you have sold them at a loss, and are interested in discussing your
rights free of charge, please contact Roy L. Jacobs. Mr. Jacobs will
speak with you personally at no cost or obligation. You may qualify to
serve as Lead Plaintiff on behalf of the Class. All motions for
appointment as Lead Plaintiff must be filed by October 17, 2008.
